Transcript Power point slides

BA 362 - Fall 2000
Memory
What do we know about the general
properties of memory?
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Memory structure
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Short-term (working) memory
Long-term memory
External memory
Declarative vs. procedural
Memory is constructive - e.g., eyewitness testimony,
recall of ad sponsorship (Energizer bunny)
Hot New Research I - is consumer memory reconstructive? (Kathryn
A. Braun, “Postexperience Advertising Effects on Consumer Memory,”
Journal of Consumer Research, 1999, 25, 319-334)
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Braun argues that memory is often reconstructive - that is, people
reconstruct the past based upon fragments of the past and current
salient information. Thus, we may remember the past differently than
it “really” was. This can affect not only eyewitness testimony or
“false” memories, but memories for consumer experiences. In
particular, Braun argues that current ads can influence the way we
remember a previous product experience!
Braun gives different groups of people a sample of a “new” orange
juice that is either bad (doctored), medium, or good based on pilot
testing. Some of the people later are exposed to a favorable ad for
the new juice.
People are then given five samples of juice and asked to identify
which one matched the one they had previously tasted. People who
saw the ad systematically rate their previous taste higher (that is,
they pick a “matching” juice that is better in taste than the juice they
actually tasted). Thus, current ads can influence the way we recall
previous product experiences.
Hot New Research II - can ads change memory for the past?
(Kathryn A. Braun, Rhiannon Ellis, and Elizabeth F. Loftus, “Can
Advertising Change Memory for the Past?,” Unpublished working
paper, 2000)
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Braun and her colleagues investigate whether showing
people ads with autobiographical references can cause
people to misremember childhood experiences.
In one study, consumers are shown ads for Disney
suggesting that they shook hands with Mickey Mouse as
a child. The ad increased reports that such an event had
actually occurred to them, relative to a control group.
In another study, ads suggesting impossible events (e.g.,
shaking hands with Bugs Bunny at Disney) led to
increased reports that such an event had occurred.
The implication is that memory for even one’s own
autobiography is potentially pliable and reconstructive!
What are some of the most important memory
issues for consumer behavior?
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Use of recall vs. recognition
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Memory cues
Differences in children’s preferences
Ad diagnostics
Visual vs. verbal memory
Autobiographical memory (next slide)
Music and memory (following slide)
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Jingles
Effects
Why are autobiographical memories
special?
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Emotion-laden
Our research shows autobiographical memories lead
to more feelings, more favorable attitudes (but need
to be linked to the product)
Nostalgia (e.g., Necco)
What role does music play in ads?
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Jingles are extremely memorable
Music can make ad more memorable, increase
attitude toward the ad, increase feelings, decrease
skeptical reactions, but distract from the message
(figure-ground issues)
Old songs in ads encourage ties to prior experiences,
emotions - like autobiographical memory, need to link
to product
BA 362 - Fall 2000
Decision Making
What are the important stages in consumer
decision making?
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How do consumers recognize there is a problem?
How much do consumers search for information?
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Costs vs. benefits
Effects of the internet on search costs and competition
Examining detailed search patterns and designing web
sites
How do consumers evaluate their alternatives?
What do consumers learn from their choices?
What are important concepts for
understanding consumers' choices?
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Consumers' choices are based on their subjective
perceptions, which may not be complete for all brands
Consumers have limited processing resources and
hence simplify
Consumers' choices are constructive and contingent
People's preferences are also constructive
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Predictions of future preferences, consumption, and
desire for variety not always accurate - durability bias,
immune neglect
Evaluation of experiences
Contingent valuation
What affects consumers' choices?
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Context matters - what is salient, what options are
available, etc. (Simonson)
Choice goals approach (accuracy, effort, avoid
negative emotion, justification)
Number of alternatives (elimination strategies mutual funds example)
Format (next slide)
Time pressure - coping strategies
Context - asymmetric dominance, added features,
separate evaluations vs. comparisons
Framing and loss aversion
Emotion (e.g., caregiver tradeoffs)
How can the way information is presented
be used to influence choices?
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People often process information the way it is
presented, without transforming it (concreteness)
Structure information so that the kind of processing
you want is easier
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Unit prices
Brand comparisons
Warnings and usage instructions (P&G Helidac
instructions)
Using default options
Hot New Research I - what are the effects of the type of default
alternative? (C. Whan Park, Sung Youl Jun, and Deborah J. MacInnis,
“Choosing What I Want Versus Rejecting What I Do Not Want: An
Application of Decision Framing to Product Option Choice Decisions,”
Journal of Marketing Research, 2000, 37, 187-202)
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Park et al. examine two ways of setting up a default
alternative: a loaded model that you subtract from vs. a
base model that you add to.
Using a loaded model default which consumers then
adjust to fit their preferences yields higher prices paid
and more options added for the final alternative
selected.
This is an instance of anchoring and adjustment consumers anchor on the default and don’t adjust
enough. It also shows the effects of loss aversion.
The higher initial list price for a loaded default may deter
people from initially considering the brand, however.
How can decision aids be used to help
consumers make choices?
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Consumers may delegate some decisions (e.g., using
agents on the net). Giving information to the agent
may be an issue.
If consumers delegate to an expert for a high-stakes
decision, they want the expert to use compensatory
strategies using tradeoffs
Issues of trust are critical in using agents (reputation
managers, epinions.com)
Some decision aids use elimination strategies (e.g., for
cell phones on point.com or for mutual funds)
What would an ideal consumer choice aid look like on
the net? Existing aids use cutoffs, weighted scores,
comparison matrices.
Hot New Research II - how can we help consumers shop online? (Gerald Häubl
and Valerie Trifts, “Consumer Decision Making in Online Shopping
Environments: The Effects of Interactive Decision Aids,” Marketing Science,
2000, 19, 4-21)
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Häubl and Trifts examine the use of interactive decision aids.
Consumers often make choices in phases, first eliminating options to get
to the most promising alternatives, then comparing those alternatives in
more detail.
To help in eliminating options, they employ a recommendation agent
using consumers’ attribute importance weights and minimum acceptable
attribute levels to provide a personalized list of recommended
alternatives. The length of the list can be controlled.
They then display a comparison matrix containing the attribute
information for the recommended alternatives that can be sorted on any
attribute.
In an experiment, they manipulate whether the recommendation agent
and comparison matrix are available to consumers or not. They find that
the presence of these aids leads to smaller consideration sets of higher
quality options and improves the quality of the purchase decision. Thus,
the decision aids enable consumers to make better decisions with less
effort.
If preferences are constructive and
contingent, how do we measure them?
When prediction is the goal, context match
(duplicate major features of the task
environment such as format, time pressure, the
context of competitive options)
 When design is the goal (e.g., for public policy)
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Consider multiple options, objectives
Design formats carefully
Encourage tradeoffs
Use multiple methods, pretests and manipulation
checks, sensitivity analysis
Really new products combine design, prediction